Current climate change policy takes place at different institutional levels. On the one hand, governments are trying to find a political framework for a global climate agreement under the auspices of the United Nations. On the other hand, a variety of local initiatives, especially city networks have been established in recent years and autonomously implement measures to combat climate change and exchange best practices.

This so-called bottom-up approach is intensified by the fact that cities have become hotbeds for socio-political and technological innovation. The high density of talent, technology and capital located in urban areas, the necessity to find innovative solutions to the pressing problems of climate change and population growth, and the role of cities as drivers of economic growth foster collaborative creativity and stimulate innovation.

Becoming increasingly independent from an institutional perspective, cities have emerged as the driving force behind implementing climate policy-related measures. This article presents the benefits of dealing with climate change at the local level and aims to demonstrate how cities have become centres of innovation in this area.

Focusing on Latin America, Brazil in particular, this paper showcases opportunities for cooperation between cities and businesses that have the potential to further accelerate the process of combating climate change and are thus instrumental to achieving a more sustainable form of urbanisation.